From 1 July 2017, there is a limit on how much of your super you can transfer from your accumulation super account(s) to tax-free ‘retirement phase’ account(s) to receive your pension income. This limit is known as the ‘transfer balance cap’ (TBC). The TBC relates to the amount you transfer into retirement phase accounts, or for those already in Retirement phase, the balance as at 30 June 2017.
The transfer balance cap will start at $1.6 million, and will be indexed in line with the consumer price index (CPI).
But this is not just affecting clients with a balance over $1.6m, in our opinion clients with a balance over $1.2m need to be thinking about this cap and putting plans in place now to minimise the impact on future benefits.
Grab your free copy of our “WHAT IS A TBC? – AND WHAT SHOULD I DO BEFORE 1 JULY TO AVOID PAYING MORE TAX?” here!
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